UPI MDR Charges: Start date, slabs and why is this Merchant Discount Rate being introduced now? All questions answered
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The Centre will impose Merchant discount rate charges on select UPI transactions from mid-October, the NPCI said.
- ✓These rules keep small merchant transactions free to support growth.
- ✓The finance ministry said, "This provision will protect street vendors, neighbourhood shops and other small businesses from additional payment costs," during the rollout.
Story at a Glance
- Category
- BUSINESS
- Reported By
- mint
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
The Centre will impose Merchant discount rate (MDR) charge on select online transactions conducted under the unified payments interface (UPI) system in India from this month, as per the National Payments Council of India (NPCI).
The NPCI in an announcement has month said that MDR would apply on person-to-merchant (P2M) UPI payments, above a certain threshold, under a revised UPI MDR framework. The rules come into effect from mid-October and keeping UPI free for all customer (person-to-person / P2P) transactions.
The rules keep 95% of low-value UPI transactions below ₹2,000 and small merchant transactions (P2PM) completely free and proposes a new fund to support the expansion of UPI acceptance among small merchants.
Unlock the Full Story with ArthNow Premium
To continue reading this complete financial story and in-depth market context, upgrade to ArthNow Premium. Enjoy unlimited access across Web and Mobile.
mint
Read the full, original unfiltered story directly on the publisher's portal.